Friday, July 6, 2012

Winning new business: Green Bridge - The Guardian

I started Green Bridge because I am passionate about the environment and I want to ensure energy efficiency is the number one priority before capital expenditure projects are implemented.

I've been working in the energy environment sector for my entire career. During that time I've worked at numerous consultancies and organisations and through my former contacts and colleagues, I've managed to sustain my business through its first 12 months. All the work I have won during my first year of trading has come from past relationships, which was my plan. It has become quite clear that the kind of work I do relies on face-to-face meetings and the building of trust, so although I have spent time and money on a website and social media initiatives, it must all be aimed at securing a meeting and developing a relationship.

Business planning helps you to prioritise. You could quite easily become sidetracked with things that are time-consuming but not necessarily lucrative. Agility is one of the benefits of being a startup and with different incentives emerging and priorities changing, any business plan must have the capacity to develop and adapt to opportunities. I would never have dreamed of approaching some of the clients I now have if I had stuck to my original plan and would have missed some golden opportunities. I think as long as the core of any business plan is robust and sustainable, what fits around it will and must change according to circumstances.

Japan's government could run out of money by the end of October because a standoff in the country's parliament has blocked a bill to finance the budget deficit.

In a crisis that echoes ones felt by other countries like the U.S. and Greece, all state spending - including salaries, pensions and unemployment benefits - could be halted if no solution is found.

A new bill to allow the government to sell bonds to fund almost half the budget has languished in parliament as the ruling Democratic Party tussles with an opposition-controlled upper house.

Shinjuku, Tokyo: Japan's government could run out of money by the end of October because of a standoff in the country's parliament

If the bill is not passed, government spending would grind to a halt, the world's third-largest economy would be put in jeopardy and its standing among credit ratings agencies could suffer.

'Without this bill, the budget will collapse,' Jun Azumi, Japan's finance minister, said earlier today, pleading for cooperation from the two largest opposition parties.

'It doesn't matter which party is in power. I really hope that we can get a multi-partisan agreement on the deficit bill.'

Japan is not the only developed nation that is staring at an imminent fiscal crisis. Greece's debt-strapped government could run out of money within weeks unless it secures a 31.8billion euro tranche of bailout funds from the European Union.

And the U.S. economy is facing $4trillion worth of expiring tax cuts and automatic government spending reductions at the end of the year, and a standoff in Congress makes the chance of a compromise over the so-called 'fiscal cliff' look dim.

The impasse in Japan however comes just after Prime Minister Yoshihiko Noda won over the opposition to pass an increase in sales tax in the lower house of parliament. However, a section of his party quit over the vote, and is poised to form a new party.

Mr Noda's Democrats still control a majority in the lower house of parliament, but are outnumbered by the opposition in the upper house. Many analysts say mid-term elections could be called.

'There's so much uncertainty over the political outlook that it's hard to say how big the risk is of the government running out of cash,' said Naoki Iizuka, senior economist at Mizuho Securities in Tokyo.

'The key would be the timing of any snap election and who would be leading the Democratic Party at the time.'

Opposition parties have threatened to delay Japan's deficit financing bill in the past but have eventually yielded and voted in favour. This time, however, the opposition may be bolder because of the row over the sales tax hike.

Japan's budget for the current fiscal year that started in April totals 90.3trillion yen.

The deficit financing bill allows Japan to sell 38.3 trillion yen in government bonds to fund the budget. The remainder is funded by tax revenue, non-tax revenue and income from bonds earmarked for public works projects.

Government expenditure is forecast to reach 43.9 trillion yen by the end of September, Mr Azumi said.

Assuming that the deficit financing bill does not pass, the government would have only 46.1trillion yen on hand, Azumi said. This means the government is sure to run out of money by the end of October, he added.

The first in line to take a hit if Japan starts running out of money would be regional governments, which rely on tax grants from the national government for much of their spending.

The Finance Ministry could start cutting tax grants to local governments in September if there is no sign that the deficit financing bill will pass, Mr Azumi said.

The government would try to prioritise pension and unemployment payments, but once the money runs out, there is not much the government can do, finance ministry bureaucrats have said.

Prime Minister Noda could reach an agreement with opposition parties to provide some temporary funding. However, Mr Noda does not have the right to override parliament on the voting of the deficit funding bill.

Japan already has the world's largest debt burden at nearly twice the size of its $5trillion economy, and a breakdown in the government's funding could increase fears that politicians are losing their grip on public finances.

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MUMBAI: Financial services stocks, as measured by the CNX Finance Index, have outperformed the broader market so far this year. The 15 stock CNX Finance Index, which reflects performance of companies from the banking, financial institutions and other financial services companies, gained 28% since January 2011 compared with the 15% rise in the Nifty.

Speculation that the central bank will re-look at the licence applications triggered a rally in these stocks in the trading sessions following the change in leadership of the finance Ministry.

Despite the sharp rise, Bajaj Finserv trades at a P/E (price to earnings) multiple of 7.55 times, a discount to the CNS Finance Index which trades at 12.68 times.

Based on its P/E, Bajaj Finserv is one of the cheapest stocks in the index after Punjab National Bank, which trades at a P/E multiple of 5.71 times and Rural Electric Corporation which trades at a P/E multiple of 6.74 times.

Whereas Rural Electric Corporation has risen 30.28%, Punjab National Bank has just risen 10.41% year to date and is one of the laggards in the index.

The other laggards are M&M Financial with returns of 10.23% and HDFC with returns of 3.6%.

Turnaround plan delivers profits, more passengers, and higher revenue; a successful end to the 2011/2012 financial year for Air Pacific.

Nadi, Fiji (PRWEB) July 07, 2012

Air Pacific today announced its financial results for the fiscal year ended 31 March 2012 (1 April 2011 – 31 March 2012). Mr. Nalin Patel, Chairman of Air Pacific’s Board of Directors, said that Air Pacific Ltd. and Air Pacific Group both made operating profits and that Air Pacific Ltd. delivered record-breaking revenue. (Air Pacific Group includes the national airline, its wholly owned subsidiary Pacific Sun, and a 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island).

Air Pacific Ltd. reported an operating profit of $16.5m, compared to an operating loss of $3.7m for the previous financial year.

Air Pacific Group reported an operating profit of $13.4m, compared to operating loss of $4.3m for the previous year.

On a net basis, Air Pacific Ltd. reported an after tax statutory profit of $11.4m and Air Pacific Group reported an after tax statutory profit of $10.7m (versus after tax statutory profits including net income due to cancelled aircraft deliveries of $24.8m net and $25.3m respectively for FY2010/11).

Air Pacific Ltd. also recorded its highest ever revenue of $645.9m, an increase of $90.5m in revenue from FY2010/2011, and an increase of $130m compared to FY2009/2010 (the year before airline restructuring and turnaround efforts began). The airline also carried 85,000 more passengers than it did the previous financial year and 122,000 more passengers than it carried in FY2009/2010.

Mr. Patel attributed the airline’s continued financial improvement and successful turnaround to the transformation measures put in place by Air Pacific’s new MD/CEO, his new management team, and Air Pacific’s dedicated and hard-working employees.

“The fact that we managed to return the airline to an operating profit only two years after we experienced the biggest loss in our history speaks volumes about the experience and capability of our new management team and the soundness of their turnaround plan. These strong, positive results during a time when other airlines are struggling validates the Board’s decision to hire Dave and support his new team’s seasoned strategic focus,” Mr. Patel said.

“Under the new team’s direction and with full support of the entire Board, Fiji’s national airline has benefited from a more than $100m improvement in its operating performance over the past two years – a remarkable feat when one considers the challenges the industry and our own airline were facing.” Air Pacific Ltd. announced an operating profit of $16.5m for this fiscal year, compared to an operating loss of $91.8m two years ago and an operating loss of $3.7m last year.

“I would like to thank my fellow Board Directors, our committed and dedicated employees, our loyal customers, our shareholders, and our many business partners for their continuing support in helping us achieve these results,” Mr. Patel added.

Dave Pflieger, Air Pacific’s Managing Director and CEO said, “Our improved financial performance is solid proof of the significant progress we’ve made as a team over the past two years. Our turnaround plan, which involves changing virtually every aspect of our company, is clearly working and today’s results are a reflection of the incredible efforts of the men and women who proudly represent Fiji’s national airline. The fact that we achieved these results despite a number of significant challenges is even more remarkable,” the airline’s chief executive added. “Some of our challenges included: a $94m increase in actual/operational fuel costs over the past two years, retiring and replacing older fleet aircraft, new and increased competition from not one--but two--low cost carriers (Jetstar and Virgin Australia), as well as a cyclone and two major floods that significantly disrupted airline operations.

Mr. Pflieger cautioned that “Air Pacific’s restructuring is not yet complete, but I am very proud of these results as they prove the capability of the entire Air Pacific team.”

Mr. Pflieger added; “to be clear, we are not out of the woods yet, and we remain ever mindful of the possible challenges posed by market uncertainty, a slowdown of major world economies, and the ever-present threat of further volatility in oil prices. At the same time, we are clearly making great progress towards our future success and sustainable profitability. With new airplanes and a complete rebranding ahead of us, we remain confident and excited about the future of our airline and the many great things we have planned for our customers.”

As announced last month, Air Pacific plans to revert to its former 1951 name, “Fiji Airways,” and rebrand the airline to coincide with the delivery of brand-new A330-200 aircraft that start arriving in March, 2013.

“We are making a significant investment in new aircraft, new products, and customer service training in order to offer our customers the best flying experience in the South Pacific. That investment, our demonstrated performance to date, and our great potential are what allowed us to attract industry leading partners to help us with our new A330-200s,” Mr. Pflieger noted.

The announced partners for Air Pacific’s new wide-body fleet are: Rolls-Royce for engines, Panasonic for in-flight entertainment systems, Zodiac company Weber for seats, and Singapore Airlines Engineering Company (SIAEC) for cabin design and vendor selection.

Other highlights of FY2011 /12 include:

Signing a purchase agreement for three brand new Airbus A330-200 aircraft and obtaining initial financing for those aircraft at a difficult time in the financial marketplace;

Retiring a vintage B767 aircraft, introducing a new B737-800, and starting B747 services to Hong Kong;

Improving Air Pacific’s network and schedules, including introducing double daily flights into Sydney, in order to make the airline more competitive and more customer friendly in a core market;

Entering into a new codeshare agreement with American Airlines;

Finalising multiple strategic partnerships to enhance the flight experience of customers traveling on board new A330s.

Adding a new Tabua Club business lounge at Nadi International Airport;

Being voted one of the “Top 10 Small Airlines in the World” in the prestigious 2011 Condé Nast Traveler’s Readers’ Choice Awards; and

Improving Pacific Sun’s network, fleet, and schedules with better connectivity to Air Pacific’s international schedule, as well as adding new weather radar and avionics systems on all DHC-6 Twin Otter aircraft.